Real Estate Glossary A [Part 6]


Continued from…

:point_right: Real Estate Glossary A [Part 5]


Within a multi-family construction, a residential unit.

A unit in a building that is normally owned under a strata (or company) title.

Originally an American term for a flat, but in Australia it might also refer to a suite or simply a room that is not always self-contained.

A room or suite of rooms used as a living unit that is not necessarily self-contained. A flat is a self-contained dwelling unit in a multi-unit dwelling.

Apartment Building

A building with separate units for people who live there for a long time and rent or lease them. The owner of the building takes care of things like lights, heat, elevators, and garbage disposal. He or she also takes care of common entrances and hallways.


The Australian Property Institute, also known as API, is a membership-based organisation for real estate experts.


A certificate from a foreign country that says that someone has been chosen to do this job. To get an apostille, you don’t need to get a diplomatic or consular acknowledgment of a document. This is because of the Hague “Convention Abolishing the Requirement for Legislation for Foreign Public Documents.”


  1. Taking a case to a higher court to ask for a review, reversal, or new trial of the case. The appellant is the person who is taking the case to court. The other person is the appellee.

  2. The legal process by which a property owner can fight a property tax assessment is called “the law.” In most states, the chance to do so is very limited.

Application Fee

A fee charged by the lender when you submit a loan application.

What a lender charges when you apply for a loan, and this is what that fee is called.

Application for Payment

A written payment document.


Things like furniture, fixtures, and equipment that are in a home, office, or other building. These things may add to or take away from the real value of the property.


  1. The division or partition of a piece of property into equal but not equal parts. For example, tenants in common might try to split up a piece of land.

  2. The pro rata split of real estate carrying costs at the end of the deal.


A licensed specialist looks at a property and gives it a professional grade.

A knowledgeable person’s estimate of the value of a piece of property.

An unbiased written estimate of a property’s fair market value.

A real estate agent provides a potential vendor with a property price estimate.

A value judgment or estimate supported by multiple analyses.

Making and sharing an opinion about the value of a piece of land Getting an appraisal is usually required when real estate is sold or financed or if it’s being taxed, insured, or partitioned. Not all appraisals are the same. They are just estimates. This could be in the form of a long report, or it could be a simple letter, or even an oral report.

The direct sales comparison approach, the cost approach, and the income approach are all used to figure out how much a home is worth.

The direct sales comparison method is based on comparing the prices of recently sold properties that are similar to yours, after taking into account things like seller concessions, time, financing, and any differences in the properties. This method, which used to be called the market-data approach, is used most often by real estate brokers when valuing homes, and it is the method that is usually used in court.

In this case, the value is based on how much it would cost to make or replace the improvements, less depreciation, and how much land value there is (land value being usually determined by the direct sales comparison approach). The cost method is best for valuing new or planned construction, as well as service properties like churches and post offices, which are used by many people every day.

Income is a way to figure out how much a property is worth. It looks at how much money a property makes and how much that money would be worth if it were put into a bank account. Income capitalization is a way of looking at investment properties like apartment buildings, office buildings, and shopping centres. It is most useful for this kind of thing.

In most appraisals, the appraiser tries to figure out how each of the three approaches comes up with a value for the property. In order to figure out how much weight to give each approach in figuring out how much value a piece of property is worth, the appraiser takes into account the definition of value, the purpose of the appraisal, what kind of property it is, and how well the data was gathered. There are three ways to look at the market. Each method is based on data from the market, so the three methods are checked on each other.

When an independent appraisal is needed, most lenders want it done by a state-licensed or state-certified appraiser. They also want the appraisals to meet the Uniform Standards of Professional Appraisal Practice.

The term commonly used in the United States to refer to what is known as a valuation in Australia. In Australia, the term refers to an opinion or summary of a property’s salability without resorting to a full-scale valuation.

Appraisal Report

The document that the appraiser submits to the customer contains the appraiser’s final estimate of market value, the facts on which the estimate is based, and the calculations used to arrive at all 1he estimate.

Appraisers write a report that includes a definition of value; a value estimate; a description of what is being valued; general data; enough evidence to back up the value estimate; a comparison of the three approaches; and an explanation of why they came up with the value estimate. Photos, maps, and floor plans are often included in the report as supporting documentation. This is what most people expect.

A valuation report in the United States.

Appraised Value

The property’s current market value as determined by an appraisal.

The estimated price or value that an “average" investor would pay for a property.


An American term for a valuer. One who calculates value. One who has the qualifications, ability, and experience to carry out or direct the appraisal or valuation of real or personal property.

A person who does appraisals and is qualified to do so.

One who thinks about value. Not only must appraisers have the right skills, abilities, education, and experience to do an appraisal of real or personal property, but they must also be state-certified or state-licensed to do an appraisal of property that is covered by a federally insured or regulated agency.

Appraisers can work for the government, lenders, or trust companies. They can also be on their own. In most cases, an appraiser’s fees are based on their time and expenses; they are never based on how much the home is worth.

When making an appraisal, math can be a useful tool. The appraiser’s experience and training are the most important factors in determining the value of a thing.

Appraiser Independence Requirements (AIR)

Established rules that protect mortgage investors, homebuyers, and the housing market by ensuring that appraisals are done without pressure from lenders and real estate agents to manipulate the value of properties. Code of Conduct: Title F of the Dodd-Frank Act says that standards must be put in place to replace it. They were made by Fannie Mae, the Federal Housing Finance Agency, Freddie Mac, and other key industry players (HV CC). It doesn’t matter if you get a loan for a one- to four-unit home, but if you get a loan from a federal agency like the FHA or VA. Appraisers should at least be licensed or certified to work in the state where the home is. People who work for lenders can get appraisals from a single appraiser and not from a company that manages appraisals.


An increase in the value of property or mediums of exchange due to general inflationary trends or other causes that may be temporary or permanent. Appreciation is the antonym of depreciation, which is used to denote shrinkage in conversion value.

A property’s value goes up after improvements and sales of parts of it have been taken into account.

When the property’s value increases over its initial value.

A rise in property values brought on by inflation, improvements, or greater demand

A rise in the value of a home as a result of changes in market conditions or other factors.

Property values rise when they rise above the value they were when they were first bought.

It is the opposite of depreciation, which is when things get less valuable or worth less over time because of economic factors.

Approaches To Value

Market data, income, and the cost method are three assessment techniques used by appraisers to evaluate the worth of real estate.


  1. It’s the act of choosing or setting aside land for a public use or purpose, like a public park or school.

  2. Admonition is the opposite of condemnation. In some states, taking water from a natural stream for private use is enough to show that you have a previous right against other people who own it.

  3. Legislatively setting aside money for a public project.


Something that is not within the boundaries of the property but is considered a part of it and contributes to its overall enjoyment.

Those rights, privileges, and improvements that come with property but aren’t always part of the property itself: these things aren’t always part of the property itself. Appurtenances to real property go with the real property to which they are attached unless there is a sign that the owner doesn’t want them to go with the real property. A deed usually talks about the property and then says, “With all appurtenances.” Appurtenances include rights-of-way, easements, water rights, condominium parking spaces, and other things that go with a home.


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Belonging to; added to; appended; or attached to. As an example, the garage comes with a house, and each apartment in a condominium has an interest in the common parts of the building that each one shares. Appurtenant items move with the land when the land is sold.


A board or panel that is put in place under the window sill.


Any subsurface substance that stores a reasonably significant amount of groundwater and can easily transfer that water.


Buying and selling an asset at the same time in order to profit from a price difference, usually on different exchanges or marketplaces. A domestic stock that also trades on a foreign exchange in another nation and whose price has not altered in step with the exchange rate is an example of this. A trader profits from the differential by buying the stock when it is inexpensive and short-selling it when it is overpriced.

  1. There is a lot of talk about spreads, or the difference in interest rates. This is a common thing in all-inclusive mortgage financing. An example: Joe Smith sells his land to Mary Jones for $10,000 with a loan of $10,000 at 12%. Mary Jones then sells the land to Susan Brown under a wraparound mortgage at a rate of 1 and a half percent. In this case, Mary Jones pays her debt to Mr. Smith with the monthly payments. The 0.5 percent arbitrage is income for Mary Jones.

  2. Buying and selling mortgages or mortgage-backed securities in different markets at the same time to make money from the difference in prices.


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A submission is a written agreement to refer current or future disagreements to arbitration. The submission of a dispute to arbitration for resolution by an arbiter (rather than a court), for example, some leases provide that if the parties cannot agree on the amount of rent to be paid on renewal, the amount will be determined by an arbitrator.

The non-judicial transfer of a dispute to a group of chosen third parties for them to decide in a way that is agreed to or that is required by law. A lot of disagreements between listing REALTORS® and their cooperating REALTORS® are settled by arbitration, in which both sides agree to follow the arbitrator’s final decision.

Many disputes are settled by following detailed rules set up by the American Arbitration Association. The most important thing about a binding arbitration is that it is quick and final, as well as the fact that the findings are kept “private,” which is important.


A covered walkway with businesses on both sides, usually with shops on both sides.

  1. A group of open or closed arches on the same level.

  2. Second, a curved walkway or passageway with an arched roof, often with shops on one or both sides.

  3. A passageway that is open on the side of the street, usually with a column or two.

  4. A paved sidewalk with a lot of small columns on it.


A person who is qualified to design and supervise the construction of buildings.

A person who plans buildings and often oversees their construction as well.

A person who creates, coordinates, and writes the drawings and specifications utilized during the development design phase.

Architectural Drawings

A building’s technical drawing (or building project).

Data that an architect has made or put together that is part of a proposal or part of contract documents. The data may include plot plans, floor plans, elevations, or sections. Most of the time, however, they don’t include mechanical, electrical, or structural plans or other specialised data that the architect gets from consultants.


  1. Among these is the science and art of building structures.

  2. How a building is made and how it looks.


There are 100 square meters in this area.


A bounded, continuous, two-dimensional object that may or may not include a border.

A piece of land that is thought to be level and at sea level. These assumptions are used to describe land in a consistent way. If you have 10 acres that slope down, you have more usable square feet than if you have 10 acres that are flat. The legal descriptions of both are the same.

through the outside walls to the main flat surface of exterior brick or wood siding, as well as the thinnest shakes and shingles. Some stairs, porches and utility rooms, as well as servants’ quarters, common walls, servants’ apartments, and garage apartments that are separate units make up the total living space.

Area Management Broker (AMB)

Property managers who work for the Federal Housing Administration in the field of housing that is subsidized by the government. They take over the property, write repair specifications, get repair bids from contractors, coordinate and inspect repair work, supervise maintenance and security, and submit financial reports.

Area Regulations

Zoning and building ordinances have rules about where things can be built on land, such as setbacks for the back and sidelines of a house.

Area Wells

A metal or concrete barrier wall around a basement or cellar window.

Arm’s Length Transaction

A transaction involving two or more unconnected parties.

A transaction between two parties that have no prior relationship and are bargaining in their personal best interests. A sufficiently negotiated transaction that is reasonably indicative of market worth.

A deal in which both parties are in the same bargaining position. At arm’s length, people do business with each other without trusting the other person’s fairness or integrity, and they don’t let the other person control them or make them do what they want (as is sometimes the case in transactions between family members). When someone doesn’t buy or sell something at arm’s length, it may have tax consequences if the value of the property is less than fair market value. There is also a factor in determining market value that has to do with whether a transaction was done at arm’s length.

Arm’s Length

(a) A concept implying that the parties involved have no special or other business relationship that may influence the concept of a willing buyer / lessor and willing seller / lessee;

(b) A transaction is said to be at arm’s length when it is conducted strictly on a commercial basis, despite mutual association between the parties involved.

Arranger Of Credit

People who arrange for someone else to give someone else money for a long time, if there will be a finance charge, more than four installments, or if the person giving the money isn’t a creditor are called Truth in Lending Act “lenders.” At the moment, the term does not include a real estate broker who helps a buyer get a loan from the seller of a home or piece of land.


Debits that are not paid on time, such as rent or mortgage payments.

A payment made at the end of a term. The majority of mortgage interest payments are made late.

Debts that have not been paid on time, mainly rent

  1. The state of not paying a debt when it is due.

  2. When expenses are due or levied at the end of a certain amount of time. This is not “in advance.” Mortgage interest and real estate taxes are often paid in the future, but this is not always the case.

Artesian Well

A well is a hole that is very deep in the ground so that the pressure inside causes the water to rise to the surface.

Articles Of Incorporation

The document that lays out the goals, powers, and basic rules of how a corporation should work. Articles of Association: These are also called rules of the group.

Articles Of Partnership

A document that outlines the terms and conditions of a partnership, including the nature of the partnership’s business and the partners’ rights and responsibilities.


Continued at…
:point_right: Real Estate Glossary A [Part 7]